BMO Capital raises Corteva stock price target to $86 on strong growth profile

Investing.com - BMO Capital has raised its price target on Corteva Inc. (NYSE:CTVA) to $86.00 from $74.00 while maintaining an Outperform rating. The stock currently trades near its 52-week high of $77.41, with a strong return of 35% year-to-date.

The firm increased its 2025 EBITDA estimates to the top end of Corteva’s $3.6-3.8 billion guidance range and set its 2026 EBITDA projection at $4.1 billion, slightly above consensus.

BMO Capital applied the same approximately 14x EV/EBITDA multiple but rolled it forward to 2026 estimates, suggesting the stock could potentially exceed $90 if Corteva reaches the midpoint of its 2027 EBITDA guidance range of $4.4 billion.

The research firm believes Corteva’s growth algorithm remains sufficient to support high-single-digit compound annual growth rates (CAGRs).

BMO Capital noted that Corteva’s EBITDA growth had stalled in the $3.2-3.4 billion range from 2022-2024 due to headwinds from crop chemical de-stocking, foreign exchange impacts, and lower crop prices.

In other recent news, Corteva has been in the spotlight with several key developments. Jefferies has raised its price target for Corteva to $92, maintaining a Buy rating, and highlighted the company’s growth potential driven by advancements in technology and strategic initiatives. BofA Securities also increased its price target to $73, citing Corteva’s strong earnings growth and robust balance sheet as factors supporting its positive outlook. In a strategic move, Corteva has partnered with Micropep Technologies to develop peptide-based crop protection solutions, granting Corteva exclusive global rights to apply specific peptides in biocontrol applications.

Additionally, Turkey’s antitrust regulator has initiated an investigation into Corteva Turkey and other companies over allegations of anti-competitive practices in the seed market. The investigation aims to determine if there was a violation of the law through the exchange of competition-sensitive information. Despite these challenges, Corteva’s performance in the seed business has exceeded expectations, particularly in soybean volumes and corn plantings in the United States. The company’s Crop Protection segment has also shown solid organic growth, further solidifying its competitive position in the agricultural sector.

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